Keppel DC REIT Deal To Lift 2026 Secondary Fundraising Above S$4B

Secondary fundraising in Singapore totalled S$3.57 billion in the first eight months of 2026 and is on track to exceed S$4 billion with the inclusion of $Keppel DC Reit(AJBU.SI)$ 's S$625 million placement currently scheduled for 10 September.

The five-year milestone reinforces the role of public equity markets in supporting listed companies beyond the IPO stage, with secondary fundraisings accounting for approximately 80% of the nearly S$90 billion raised through equity capital markets since the end of 2016.

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Keppel DC REIT: Upsized S$625 Million Placement to Fund Japan Hyperscale Data Centre Acquisition

Keppel DC REIT completed an upsized private placement to partially finance its acquisition of an 88.62% effective interest in two freehold hyperscale colocation data centres in Inzai City, Greater Tokyo. The placement was initially launched to raise at least S$600 million before being increased to approximately S$625 million following strong investor demand.

The transaction was approximately 3.5 times covered before the upsizing and remained approximately 3.4 times covered after the increase in size. Investors comprised existing and new institutional and accredited investors globally, with most allocations made to long-only investors and real estate specialists.  The placement was priced at S$2.10 per unit. The new units are expected to commence trading at 9.00am on 10 September 2026. A total of 297.62 million new units will be issued, equivalent to approximately 12.2% of the pre-placement unit base.

Approximately S$615.8 million, or 98.5% of the gross proceeds, will be used to partially finance the acquisition, with approximately S$9.2 million allocated to transaction-related fees and expenses. The placement forms part of the financing package for the acquisition, which is valued at approximately JPY168.4 billion, or S$1.37 billion. The acquisition price represents an approximate 2.1% discount to the assets' valuation of JPY194.0 billion. 

The two hyperscale colocation data centres are fully occupied by four investment-grade internet enterprise and IT services clients and provide multiple embedded growth drivers. Average contractual annual rent escalation is approximately 2.8% , while in-place rents are estimated to be at least 30% below prevailing market rents, providing potential for future rental reversions. On a pro-forma basis, had the acquisition been completed on 1 January 2025, FY25 distribution per unit would have increased 2.6% from 10.381 Singapore cents to 10.649 Singapore cents. 

The acquisition will increase Japan's contribution to portfolio rental income from approximately 9% to approximately 23% while maintaining Singapore as the REIT's largest market at approximately 60% of portfolio rental income. Following completion, assets under management are expected to increase from S$6.3 billion to approximately S$7.6 billion across 27 data centres in 10 countries. 

Portfolio weighted average lease expiry by lettable area is expected to improve from 6.7 years to 6.8 years, contracted power capacity is expected to increase from approximately 95% to 96%, and the top client's contribution to rental income is expected to decline from 43.5% to 38.2%.

Management also highlighted that three of the four investment-grade clients are new to the portfolio, broadening the tenant base and reducing concentration risk. The manager indicated the acquisition deepens Keppel DC REIT's presence in one of Asia-Pacific's most attractive data centre markets, supported by rising cloud adoption, AI-related deployments and digital transformation trends. It added that the transaction strengthens portfolio resilience and diversification while broadening the REIT's network of institutional investment and operating partners, enhancing access to future investment opportunities globally. 

Secondary Fundraising in 2026 Set to Surpass S$4B

Secondary fundraising in 2026 has been led by large REIT placements. The three largest completed transactions raised approximately S$2.24 billion, accounting for 63% of the S$3.57 billion in secondary funds raised in the first eight months of 2026. Activity outside the REIT sector was spread across industrials, resources, healthcare, financial services, marine and technology, although transaction sizes were generally smaller. 

The table below covers the first eight months of 2026 and excludes several transactions awaiting issuance or listing. These include Keppel DC REIT’s S$625 million private placement, with the new units expected to commence trading on 10 Sep, and $Frencken(E28.SI)$ ’s proposed S$100 million placement and $Bromat(9I7.SI)$ ’ proposed placement of 32.90 million shares. 

Frencken intends to allocate S$87.4 million, or approximately 90% of the placement’s net proceeds, to business expansion, manufacturing capacity and capabilities, and strategic investments, including potential acquisitions, joint ventures and alliances. The remaining S$9.7 million will support working capital and/or repayment of bank borrowings.

$First Sponsor(ADN.SI)$ ’s proposed rights issue of up to S$332.6 million in perpetual convertible capital securities is also excluded. The rights issue received SGX-ST approval in-principle on 28 August, but the offer timetable and actual amount to be raised have yet to be announced.

The 40 largest secondary fundraisings by value that were listed in the first eight months of 2026 are tabled below.